Questions about GM's future cloud car-shopping

HAMILTON, Ohio -- In vehicle showrooms across the country, questions about the future of auto giant General Motors Corp. add to the usual haggling and give-and-take.

Car shoppers have been kicking the tires a little more cautiously as salespeople try to ease their worries about service warranties, resale values and even whether GM dealerships will still be around in another year.

The general manager of Rose Chevrolet in this southwest Ohio city gathered his sales force this weekend ahead of announcements expected today that will shape the outlook for a company long intertwined with much of America's daily life.

"Here's what we need to stress, guys," Ed Larkin said at the dealership along a busy highway. "Rose Chevrolet is going to be here; we're going to be here selling vehicles and here to service their vehicles. That isn't going to change."

But GM's troubles -- the company is expected to file today for bankruptcy court protection -- are a concern for those who own or are considering buying one of the company's vehicles in a recession that's eroded the financial security of many households. Customers concerned about being able to service those vehicles must consider GM's plan to force 1,000 to 1,200 underperforming locations to close their doors as the automaker tries to thin dealer ranks to make remaining outlets more profitable.

GM plans to cut more than 2,600 dealers by the end of 2010. The company expects to lose 500 Hummer and Saturn dealers when those brands close or are sold, and it expects 400 dealers to close voluntarily. Another 500 would be consolidated into other dealerships.

"This is a major purchase by consumers; they don't make it very often and they want more stability," said Michael Robinet, vice president of global forecast services for CSM Worldwide, an auto industry consulting company based in Northville, Mich.

Steve Fischer, 56, a gold coin dealer from Los Angeles, was in the market for a new Corvette convertible. He is confident GM will bounce back.

"They're not going to disappear," he said. "GM is too big."

At Rose Chevrolet, Larkin is making plans to mark the dealership's 25th anniversary in June. There'll be a luncheon and recognition for longtime employees, and a celebration with customers. He's hoping to be able to offer big incentives to buy new Chevrolets; he expects the restructuring to improve long-term opportunity for the dealership.

Jim Meador, of nearby Darrtown, is also staying optimistic about the company whose cars, trucks and vans he's been buying for three decades.

"It is a part of America and has been for a long time," he said. "And hopefully, it will be for a long, long time to come."